Find the nominal annual rate of interest for the following investment. Principal $1848.00 Future Value $2553.52 Time Due 5 years Frequency of Conversion monthly The nominal annual rate of interest is % compounded monthly. (Round the final answer to four decimal places as needed. Round all intermediate values to six decimal places as needed.)
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- 1)Find the nominal annual rate of interest for the following investment. Principal 6900.00 Future Value $2167.17 Time due 3 years Frequency of Conversion semi-annually The nominal annual rate of interest is % compounded semi-annually. (Round the final answer to four decimal places as needed. Round all intermediate values to six decimal places as needed.)The following investment requires table factors for periods beyond the table. Create the new table factor, rounded to five places, and calculate the compound amount for it. Round your answer for compound amount to the nearest cent. Principal TimePeriod (years) NominalRate (%) InterestCompounded New TableFactor CompoundAmount $23,000 16 10 semiannually $If the accumulated value of an investment that is growing at 3.95% compounded semi-annually is $93,924.39, and the interest earned on this investment is $47,924.39, calculate the time period of this investment. Calculate the effective interest rate for each of the following nominal interest rates: a. 2.73% compounded quarterly. b. 2.73% compounded monthly.
- Suppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounded (a) annually? (b) semiannually? (c) quarterly? (d) monthly? (e) daily (365 days)? (f ) continuously? (Note: Report your answers accurate to four decimal places –e.g., 0.0987 or 9.87%.)Using Table 11-1, compute the amount of compound interest (in $) earned in 1 year and the annual percentage yield (APY) for the investment. (Round your answers to two decimal places.) Principal NominalRate (%) InterestCompounded Compound InterestEarned in 1 Year Annual PercentageYield (APY) $6,000 12 semiannually $ %The following investment requires table factors for periods beyond the table. Using Table 11-1, create the new table factor, rounded to five places, and calculate the compound amount (in $, rounded to the nearest cent.) Principal TimePeriod (years) NominalRate (%) InterestCompounded New TableFactor CompoundAmount $17,000 29 6 annually $
- Using the compound interest formula, calculate both the value of the investment and the interest earned after the given time periods. a) $4000.00 for five years at 7% compounded semi-annuallyDetermine the future value of $10,000 under each of the following sets of assumptions: Annual Rate Period Invested Interest Compounded1. 10% 10 years Semiannually2. 12 5 years Quarterly3. 24 30 months MonthlyUsing annual, semiannual, and quarterly compunding periods, (1) calculate the future value i f $10,000 is deposited intially at 8% annual interest for 8 years , and (2) determine the effective annual rate (EAR)
- PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULASProblem 1 Find the final value (FV or FV) at compound interest of $10,000, for 10 years:(a) at 7.5% effective annual rate. (rates are annual)b) At 7.5% compounded monthly.c) At 7.5% capitalized quarterly.d) At 7.5% compounded semiannually.The following investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal). Use Table 11-2. Round your new table factor to five decimal places and your present value to the nearest cent. CompoundAmount Term ofInvestment (years) NominalRate (%) InterestCompounded New TableFactor PresentValue $37,000 38 7 annually $A one-time investment is made in the amount of $9,200 for 15 years at an APR of 6%. Compound Interest: , where is the final amount, is the principal invested, is the interest rate per compounding period, and is the number of compounding periods. Compounded Principal Interest Rate per Compounding Period Number of Compounding Periods Write the Compound Interest Formula Final Amount Annually $9,200 6% 15 ? = 9,200(1 + 0.06)^15 $22,048.34 Semi-Annually $9,200 Quarterly $9,200 Monthly $9,200 Weekly $9,200 Daily $9,200